Last Updated: 05 Nov 2024
Executive Summary
MoneyLion Inc. (ML), trading on the NYSE, is a financial services company with a market capitalization of $485.24 million. The company has shown promising growth in recent quarters, with a 22.8% year-over-year increase in revenue. However, its profitability remains low, with a profit margin of only 0.004%. The stock is currently trading at $44.24, below the analyst target price of $85.65.
Company Overview
MoneyLion provides a range of financial products and services, including mobile banking, lending, and investing. The company targets the underbanked and underserved population, offering them access to financial services that may not be available through traditional banks.
Fundamental Analysis
Revenue: Revenue for the trailing twelve months (TTM) was $475.07 million, representing a 22.8% increase year-over-year.
Earnings: Diluted EPS for the TTM was $0.27.
Profitability: Profit margin is low at 0.004%, while operating margin is 0.0438%.
Valuation: The stock is trading at a trailing PE ratio of 163.85 and a forward PE ratio of 15.7. The price-to-sales ratio is 0.986, and the price-to-book ratio is 1.683.
Technical Analysis
Trend: The stock is currently in a downtrend, trading below its 50-day and 200-day moving averages.
Support and Resistance: Key support levels are at $40 and $35, while resistance levels are at $50 and $55.
Technical Indicators: The RSI is below 50, indicating oversold conditions. The MACD is also below zero, suggesting a bearish trend.
Short Term Outlook
In the short term, the stock is likely to remain under pressure as it continues to trade below its moving averages. Support at $40 and $35 could provide some downside protection, but a break below these levels could lead to further declines.
Long Term Outlook
The long-term outlook for MoneyLion is more positive. The company is addressing a large and underserved market, and its mobile-first approach could give it a competitive advantage. However, the company needs to improve its profitability to justify its current valuation.
Analyst Recommendations
Analysts are generally bullish on MoneyLion, with five Buy ratings and one Hold rating. The average analyst target price is $85.65, which implies a significant upside potential from the current price.
